Update Regarding Land Use Mortgage Rights

The Vietnamese Government issued Decree 05/2012/ND-CP to change and set up new rules concerning mortgages of land use rights and assets lying on land. More specifically, this kind of contract was to be approved by the commune-level People’s Committee; but according to the Decree, from April 2012 this power will be passed on to the district-level authorities.

The procedures will have to be settled on the same day in which the documents are received, unless the delivery takes place after 3 p.m. In this case, the application will be processed the following day.

The aforementioned Decree also introduces some new rules regarding the time needed to transform a company from the one-member LLC to the standard LLC with more than one member, shortening it from seven to five days.